'^'^onQmmm 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

WASHINGTON, D.C. 

Essential Air Service at 

MASSENA, NEW YORK 

OGDENSBURQ NEW YORK ) OST-1997-2842 

WATERTOWN, NEW YORK 

) 

Under 49 U.S.C. §41731 et seq. ) 

GULFSTREAM INTERNATIONAL AIRLINES PROPOSAL 

TO PROVIDE SUBSIDIZED AIR SERICE AT 

MASSENA. OGDENSBURGAND WATERTOWN. NEW YORK 

Correspondence with regard to this document should be addressed to: 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines 

3201 Griffin Road, 4"' Floor 

Ft. Lauderdale, FL 33312 

Telephone: 270-689-2180 

Fax:270-689-2180 

E-Mail: mbowman@gulfstreamair.com 

Gulfstream International Airlines ("Gulfstream") cordially submits its proposal to provide subsidized air 

service to Massena, Ogdensburg and Watertown, New York. Gulfstream hereby offers one, "all or 

nothing" option for service. 

Gulfstream proposes to operate flights, under its independent Gulfstream International Airlines identity to 

the large hub airport of Boston, Massachusetts. As recently as 2007, a former EAS carrier produced 

significant traffic from this upstate region with service to Boston. Over 25.5 million passengers traveled 

through Boston Logan Airport in 2009, including 3.7 million international passengers. Boston is truly the 

gateway of New England receiving service from 47 scheduled carriers, with no single carrier demanding 

more than a 25% market share. Boston enjoys non-stop service to some 71 domestic destinations as well as 

30 non-stop international destinations. Gulfstream has maintained interline ticketing and baggage 

agreements with most legacy carriers. Gulfstream contends that reasonable local fares will stimulate 

demand and the variety of destinations available from Boston will allow these markets to recapture traffic 

that has been lost over the years. 

In compliance with Public Law 100-223, Gulfstream proposes to operate these flights using Beech 1900D 

turboprops that are pressurized and accommodate 19 passengers to the, FAA defined large hub at Boston, 

Massachusetts. The 1900D features stand up headroom and a pressurized cabin that we feel is critical in 

recovering lost passengers with ample cargo capacity to accommodate bulky military duffle bags. Of 

particular note for Watertown, NY, given its proximity to Fort Drum US Army Base, is the fact that 

Gulfstream is a certified Department of Defense air service provider. 
Service Option 1 

24Weeldy frequencies between Massena, New Vorl^ and Boston, Massacliusetts; 24 weeldy 

frequencies between Ogdensburg, New Vorlc and Boston, Massacliusetts and 24 weeMy frequencies 

between Watertown, New York and Boston, Massachusetts 

Gulfstream proposes to operate these flights under it own independent marketing identity The timing of 

these flights will be optimized for connections to and from both legacy and low cost airline flights at 

Boston as well. Gulfsfream proposes to encourage connecting traffic by using a simplified local fee 

structure whereby passengers connecting to or from other airline flights would pay only the low, local fare 

in addition to the low fares already a feature at Boston. The basic service pattern would consist of two, 

non-stop roundtrips each weekday to Boston from each of the three cities. A single non-stop roundtrip 

from each city would operate on Saturdays and Sundays to Boston. 

Service Option 1 

Gulfstream Airlines 

Sample Fliglit Scliedule 

FROM TO DEP ARR FLT EQUIP FREQUENCY 

STA STA TIME TIME NUM 

STOP 

BOS MSS 805am 930am 9007 BEl 

BOS MSS 405pm 530pm 9010 BEl 

Monday thru Saturday 0 

Sunday thru Friday 0 

MSS BOS 950am 1110am 9007 BEl 

MSS BOS 550pm 710pm 9010 BEl 

Monday thru Saturday 0 

Sunday thru Friday 0 

FROM TO 

STA STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQUENCY STOP 

BOS OGS 

BOS OGS 

OGS BOS 

OGS BOS 

800am 930am 9001 

400pm 530pm 9004 

950am 1115am 9001 

550pm 715pm 9005 

BEl 

BEl 

BEl 

BEl 

Monday thru Saturday 0 

Sunday thru Friday 0 

Monday thru Saturday 0 

Sunday thru Friday 0 

FROM TO 

STA STA 

DEP ARR FLT 

TIME TIME NUM 

EQUIP FREQUENCY STOP 

BOS ART 1200pm 130pm 9002 BEl 

BOS ART 800pm 930pm 9005 BEl 

Monday thru Saturday 0 

Sunday thru Friday 0 

ART BOS 600am 725am 9000 BEl 

ART BOS 200pm 325pm 9003 BEl 

Monday thru Saturday 0 

Sunday thru Friday 0 

(BOS=Boston; MSS=Massena; OGS=Ogdensburg; ART=Watertown) 

(Note: This Schedule is for illustrative purposes and may not reflect the final published product) 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Massena, NY - Boston, MA 

Option I 

Massena 

Hub Served 

Number of Roundtrips per Service Day 

(2 non-stop) 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Proiections 

Enplaned Passengers 

(Average as 

Mileage Operated) 

Average Fare 

Passenger Revenue 

Expense Projections. 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element @ 5% 

Annual Subiidy Required 

Subsidy per Departure 

Subsidy per Passenger 

Boston 

2 

98.0% 

1,634.80 

1,226.40 

6,105,036 

1,676,800 

27.5% 

6,400 

262 

$ 69.38 

$ 444,032 

$207,787 

$408,500 

$761,724 

$744,819 

$686,614 

$12,000 

$2,821,445 

($2,377,413) 

$141,072 

$2,518,485 

$2,053.55 

$393.51 
GULFSTREAM INTERNATIONAI. AIRLINES 

Essential Air Service Proposal 

Ogdensburg, NY - Boston, MA 

Option 1 

Hub Served 

Number of Roundtrips per Service Day 

(2 non-stop) 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Proiections 

Enplaned Passengers 

(Average as 

Mileage Operated) 

Average Fare 

Passenger Revenue 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Administration 

Fuel 

Marketing 

Ogdensburg 

Boston 

2 

98% 

1,716.96 

1,226.40 

6,407,958 

1,100,000 

17.2% 

4,000 

275 

$ 69.38 

$ 277,520 

$218,231 

$408,500 

$796,989 

$729,767 

$721,125 

$12,000 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element @ 5% 

Annual Subsidy Required 

Subsidy per Departure 

Subsidy per Passenger 

$2,886,614 

($2,609,094) 

$144,331 

$2,753,424 

$2,245.12 

$688.36 
GULFSTREAM INTERNATIONAL AIRLINES 

Essential Air Service Proposal 

Watertown, MY - Boston, MA 

Option I 

Watertown 

Hub Served 

Number of Roundtrips per Service Day 

(2 non-stop) 

Operating Statistics 

Assumed Completion % 

Annual Adjusted Block Hours 

Annual Adjusted Departures 

Annual Adjusted ASMs 

Annual RPMs 

Projected Load Factor 

Revenue Proiections 

Enplaned Passengers 

Mileage 

Average Fare 

Passenger Revenue 

Expense Proiections 

Flight Operations 

Ownership 

Maintenance 

Reservations, Stations & Adm 

Fuel 

Marketing 

Total Annual Expenses 

Projected Profit / (Loss) 

Profit Element 

(Average as 

Operated) 

nistration 

@5% 

Boston 

2 

98% 

1,716.96 

1,226.40 

6,454,561 

3,217,355 

49.8% 

11,615 

277 

$ 69.38 

$ 805,849 

$218,231 

$408,500 

$796,989 

$811,869 

$721,125 

$12,000 

$2,968,715 

($2,162,867) 

$148,436 

Annual Subsidy Required 12,31U02 

Subsidy per Departure 

Subsidy per Passenger 

$1,884.62 

$198.99 
In conclusion, Gulfstream believes that this proposal will provide the communities of Massena, 

Ogdensburg and Watertown, New York with superior air service. We feel the passengers will benefit from 

the strength of the Boston hub and attraction of non-stop, stand up, pressurized air service. Additionally 

the integrity of service that has been a hallmark of the Gulfstream operation will return both dependability 

and reliability to the traveling public and result in increased ridership and passenger satisfaction. 

Respectfully Submitted: July 14,2010 

Mickey Bowman 

Vice President of Corporate Development 

Gulfstream International Airlines